The Complete Idiot's Guide to Law for Small Business Owners

by Maple, Stephen

• ISBN13: 9780028639628
• ISBN10: 0028639626
• Format: Paperback
• Copyright: 2000-10-12
• Publisher: DK Publishing, Inc.

Summary

This book is for anyone who needs easy-to-understand legal advice for owning or running a business. The guide gives small business owners and managers a legal overview of topics such as partnerships, sole proprietorships, corporations, hiring and firing of employees, leasing commercial space, and implementing e-commerce. It helps them to understand the legal implication of each topic and to know what questions to ask their regular attorney. Topics also include franchises, trademarks, patents, collections, taxes and bankruptcy, as well as dealing with lawsuits, selling your business, and including your business in your estate.

Table of Contents

Part 1: Choosing Among the Business Entities	1	(80)
The Business for You	3	(12)
Begin your reading here for a preview of coming attractions. This chapter provides an overview of the kind of legal issues and challenges small business owners face
Partnership in Harmony	15	(14)
Partnerships may seem commonplace whenever two or more gather to conduct business, but this chapter will point out potential pitfalls, including the fact that all partners are liable for the business debts
The Inc. for You	29	(10)
Incorporation can protect your personal assets from business creditors, and you can choose to be taxed on the corporate income you receive or have the corporation itself taxed
The Limited Liability Company Limits Your Liability	39	(10)
The LLC is the new kid on the entity block and has the advantage of partnership taxation without the members being liable for the business debts
Going Solo as a Sole Proprietor	49	(10)
It might seem like all you need to do is hang out your business sign and begin, but keep in mind that the debts and taxes are yours. This chapter will help you consider all of the challenges and benefits awaiting you as a sole proprietor
Taxing Matters	59	(12)
Your business entity choice determines the income tax effect. We'll show you the how it all should work
Hiring a Lawyer, Accountant, and Other Advisors	71	(10)
You can't do it alone, so we'll show you why it makes sense to pay a fair price for the advice you need, and also take advantage of free resources
Part 2: Beginning Your Successful Business	81	(50)
Buying an Existing Business: Traps for the Unwary	83	(12)
Spend time and seek advice on the best business that fits you personally and financially, then negotiate the best deal with the help of your advisors
Franchising for Success	95	(12)
Franchising is big business for small businesses, but read the fine print before you sign
Raising Money When You Need More Than You Have	107	(12)
Borrowing to finance your operation requires good financial planning. Selling shares in your corporation may get new money but at the price of diluting your control
Finding the Right Location: Realty Bites in Leasing or Buying	119	(12)
Read all the fine print on your proposed lease, then negotiate the best terms. If you buy, check the zoning and liens before you close
Part 3: Your Employees Matter	131	(44)
Selecting Employees Without Violating the Law	133	(14)
Recruiting and hiring employees requires you to be aware of and avoid violations of employment anti-discrimination laws
Money and Other Matters in Employee Compensation	147	(14)
Salary counts most, but fringe benefits save your employees substantial taxes; medical insurance and a 401(k) may be the best fringes, but beware of medical insurance cost
Keeping or Letting Go	161	(14)
Some employees just don't seem to work out, but before you fire, try to rehabilitate. If you must terminate, we'll show you how to avoid violating the employment laws
Part 4: Running the Business	175	(58)
Insuring Your Business (and You) Against Life's Disasters	177	(12)
You need adequate insurance to protect against fire, theft, and other natural disasters, as well as employees who run red lights while on delivery
Contracts That Are Binding	189	(16)
Your business contracts are your assets, so write them with care
Employee Negligence and Other Harmful Behavior	205	(16)
Your employees may be negligent or your product may injure a customer. You'll find out here what you may be liable for
Suing and Being Sued: Basics of Litigation	221	(12)
We live in a lawsuit-happy society, so you need to know how to defend your company. You can also think of small claims court as your collection agency
Part 5: Protecting Your Business Assets	233	(60)
Consumer Rights and Your Responsibilities	235	(10)
Customers expect honest dealings, and though you're fair, you'll need to know about the numerous consumer laws you may inadvertently violate
Extending Credit and Collecting from a Reluctant Debtor	245	(14)
Protect yourself when you sell on credit by securing the debt with the debtor's collateral
TMs, SMs, Copyright, Patents, and Trade Secrets	259	(10)
A name may say it all to your customers, so trademark it. Copyrights and patents could be your most tangible assets
ABCs of Administrative Law	269	(10)
The alphabet soup of federal and state administrative agencies may regulate your business, so you need to know how to operate in their environment
Wave of the Now: The Net or Home	279	(14)
E-commerce applies old laws to new situations; most home-based businesses operate under the same rules as any other business but there are exceptions worth noting
Part 6: Looking Ahead and Closing Down	293	(64)
Insolvent: Coping with Bankruptcy Protection	295	(12)
Filing bankruptcy may not be the end, because Chapter 11 bankruptcy permits you to continue and work out an arrangement with creditors
Your Estate Plan Includes the Business	307	(50)
Writing your last will and testament is just the beginning of estate planning for your retirement and for your heirs
Appendixes
A Glossary of Legal Terms	325	(7)
B Basic Business Forms	332	(25)
Index	357